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TMI Blog2008 (8) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... irror and toughened glass. It is holding a recognition certificate under section 4B of the Act for the purchase of raw material (glass-sheet) on payment of no or concessional rate of tax. It was found that the dealer-opposite party has disposed of cuttings of glass-sheet which was not used by it in the manufacture of toughened-glass on consignment basis outside State of U.P. A show-cause notice under section 4B(5) of the Act was issued. In reply thereof it was submitted that those sheets were not of any use for manufacture of toughened glasssheet. The residue is waste and the same is sold as a waste which may be raw material for others. The said reply was not found satisfactory either by the assessing officer or by the first appellate autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of production should also not be sold or disposed of. Section 4B provides special relief to certain manufactures. It authorises certain manufactures to purchase raw material for the manufacture of notified goods and such notified goods are required to be sold by him interState or in the course of its export out of India. Admittedly, the dealer purchased glass-sheet against form IIIB and availed the benefit of concessional rate of tax/exemption. It was thus obligatory on the part of the dealer to use such glass-sheets for the manufacture of toughened glass. Before selling the remains of glass-sheet, no permission from the Department was sought for. A learned single Judge of this court in Commissioner of Trade Tax v. Faruqi Glass Industrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by providing the minimum penalty. It does not grant any exemption to such dealer holding recognition certificate to dispose of such raw material purchased at concessional rate of tax or without payment of tax in any manner. The raw material has necessarily to be used in the manufacture of the specified goods. On the unused portion of the raw material, may be waste for a dealer, it has to pay the tax by way of penalty as provided for under sub-section (5) of section 4B. It may be in such cases the minimum one. In view of the above discussions, the order of the Tribunal is indefensible and is liable to be set aside so far as it holds that no penalty can be levied on the glass sheet raw material amounting to Rs. 2,43,277.10. On ..... X X X X Extracts X X X X X X X X Extracts X X X X
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